Pindan Group’s assets could soon be on the market as administrators EY trawl through the remnants of the construction group, with 500 subcontractors expected to be affected.
Pindan Group’s assets could soon be on the market as administrators EY trawl through the remnants of the construction group, with 500 subcontractors expected to be affected.
Sam Freeman, Vincent Smith and Colby O’Brien of EY were appointed administrators at 5pm on Tuesday night, after Business News revealed on Monday that Pindan was facing financial trouble.
But EY said on Tuesday night it could not confirm how much money was owed.
Entities with administrators appointed included Pindan Group, Pindan Contracting, and Pindan Asset Management.
EY’s team were appointed liquidators to nine entities, comprising Pindan Capital, Pindan Capital Investments, Pindan Constructions, Pindan Projects WA, Pindan Homes, Pindan Constructions (NSW), Pindan Developments, Pindan Realty, and Moselle Holdings.
Across the empire, Pindan has 68 active projects and 280 staff.
But there are a further 500 subcontractors and 400 trade suppliers affected, EY expects.
The company is owned by Singaporean-listed Oxley Holdings.
A spokesperson for EY said administrators would be seeking expressions of interest for the group’s business and assets, with more detail in coming days.
“We acknowledge our appointment as external administrators may place many employees, individuals, clients, suppliers and subcontractors of Pindan Group companies in difficult positions,” a spokesperson said.
“We will endeavour to provide further updates as soon as practically possible and, we will otherwise appropriately engage all current and prospective public and private stakeholders of the companies in accordance with the relevant statutory and contractual frameworks.”
Meanwhile, Oxley Holdings released a statement to the Singaporean Stock Exchange shortly before midnight in which executive chairman Chiat Kwong Ching blamed COVID for Pindan's predicament.
He said the pandemic had caused delays to construction activities, project completions and the collection of project proceeds.
Oxley would take a non-cash charge of $A48.3 million for the financial year, writing off the net assets of the Pindan Group.
The group had provided corporate guarantees to secure up to $12.5 million of insurance bonds issued for the benefit of Pindan Group, he said.
Business News is a registered creditor of Pindan in relation to a small advertising contract.
